Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 121.60

+2.2%

Dec 26 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: goldsheet who wrote (85166)	5/7/2002 8:03:21 AM
From: long-gone	Read Replies (1) of 116834

What do you think? True, False? How much larger will the governments of the world allow the largest gold mining firms to become? At what point will the anti-trust types see too few players, have we already passed that point? Would ABX be welcome in S.A.? Mining Web >Gold Fields raid talk persists By: Tim Wood Posted: 2002/05/06 Mon 17:52 EDT \| © Miningweb 1997-2002 PRINCETON, New Jersey -- There has been no let up in market talk that Gold Fields [GFI; GOLD] is about to be taken out. Barrick [ABX] and AngloGold [AU] are the usual suspects and not without good reason. Rumours have escalated to the point where the involvement of Barrick and AngloGold is regarded as a fait accompli; all that remains is to confirm out the details of the transaction. Trade in Gold Fields's Nasdaq depository receipt has rocketed with recent daily volumes more than double those at the start of the year. Deal in a nutshell It is thought that recent UBS Warburg dealing in Gold Fields stock points to an exchange of Anglo American's [AAUK] 17 per cent holding in the company for Barrick stock. Anglo acquired the stake in a 2001 share swap with Afrikaner conglomerate Rembrandt which has lost heavily by selling out at the bottom of the cycle. Barrick has a history of cooperating with AngloGold; most recently in its failed bid for Normandy. Learning from Newmont's [NEM] advantage in having nearly one-fifth of Normandy's stock pledged to it by Franco-Nevada, it is assumed that Barrick would pledge its Gold Fields stock to AngloGold as the point player in the deal. Anglo American and AngloGold have probably been buying additional Gold Fields stock in the market so, combined with the Barrick pledge, they would be almost certain of victory if an unsolicited offer was made. The logic for such an arrangement is compelling. Anglo American can retain its diffident aura whilst securing additional gold exposure outside SA. No less important is the fact that in a rising price environment hedge book dilution is essential. Gold Fields's mammoth, unencumbered reserves are exactly the right medicine for leading hedgers Barrick and AngloGold. Barrick has long been testing market reaction to its possible entry to SA, most notably in direct comments at the January Cape Town mining indaba. Chief executive Randall Oliphant gabbed with SA president Thabo Mbeki at the World Economic Summit in 2001 and sources say he had follow-up discussions in SA. Adding to the speculation are reports that Barrick executives bought residential property in Cape Town when the rand(cont) m1.mny.co.za

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next